What is Bitcoin (BTC) Doing Right Now?
Bitcoin is currently trading around the $41,500 mark and is looking quite bearish in the immediate short term. We did mention in our recent price analysis that the price might break below the support at $41,700 and it seems to be playing out at the moment. Bitcoin has been moving in a downtrend for the past several weeks now and is struggling to gain some bullish momentum. Let’s take a look at the latest Bitcoin charts to see where the price is headed in the coming days.
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Analyzing the Charts
If we take a look at the 1-day charts we can see that the price is coming to retest the previous bottom once again. Bitcoin has been holding this line for several months now and has not closed any daily candles below it.
It is vital for Bitcoin to hold this level in the coming days as breaking below it could trigger a major sell-off. It also makes the head & shoulders pattern we previously talked about come into play once again.
This head & shoulders pattern is not in the perfect shape, but it could start a bear market for Bitcoin if it plays out in the coming weeks. The breakdown target for this structure would be around the $20,000 mark.
On the other hand, we can also see that Bitcoin is facing this trendline resistance and needs to start closing daily candles above it to gain some bullish momentum.
We can see that the price is facing continuous rejection at this level. We would be watching this trendline resistance closely in the coming days.
Conclusion: Is Bitcoin (BTC) Looking Bearish?
Bitcoin has been moving within a downtrend for the past few weeks. It struggles to sustain bullish momentum whenever the price climbs. Right now, it is crucial that BTC holds the $40,700 mark on the 1-day timeframe. It is the level that we are calling the bottom for Bitcoin at the moment. If the price drops below it things will start getting quite bearish. We will also not be placing any trades on BTC at the moment.
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